6. Loan Servicing

Mortgage loans sold to and serviced for others are not included in the accompanying statements of financial condition. The unpaid principal balances of these loans as of December 31 of the years indicated are summarized as follows:


*(dollars in thousands)*	2013		2012		2011
Mortgage loans sold to Federal Home Loan Mortgage Corporation without recourse	$	13,325	$	16,755	$	23,832
Mortgage loans sold to Federal National Mortgage Association without recourse		106,597		116,352		112,693

Balance, end of period	$	119,922	$	133,107	$	136,525

The Company records servicing assets related to mortgage loans sold and serviced at fair value and will amortize these servicing assets over the period of estimated net servicing income associated with each loan. Management assesses servicing assets for potential impairment annually. Activity related to servicing assets for the years ended December 31, 2013, 2012 and 2011 is summarized as follows.


*(dollars in thousands)*	2013			2012			2011
Balance at the beginning of the year	$	611		$	545		$	145
Recognition of servicing assets from the transfer of financial assets ⁽¹⁾		101			261			529
Amortization		(196	)		(195	)		(129	)


Balance, end of period	$	516		$	611		$	545

Fair value, end of period	$	1,009		$	1,995		$	1,811

⁽²⁾	Includes $404,000 acquired in 2011 from the acquisition of GSFC.

Custodial and escrow account balances maintained in connection with the foregoing loan servicing arrangements were $1,064,000 and $1,313,000 as of December 31, 2013 and 2012, respectively.